State Capacity and Long-Run Performance
Abstract
We examine the long-term links between state capacity and economic performance. Our database is novel and spans 11 countries and 4 centuries in Europe, the birthplace of modern economic growth. A dynamic simultaneous equation panel model indicates that the performance effects of states with modern extractive and productive capabilities are significant, large, and robust to a broad range of specifications, controls, and sub-samples. We find that the establishment of an effective state increased per capita GDP by 7 percent over a half-century and by 11 percent over a full century.Download Info
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 38299.Length:
Date of creation: 23 Apr 2012
Date of revision:
Handle: RePEc:pra:mprapa:38299
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Keywords: political regimes; state capacity; public services; economic performance; European history;Find related papers by JEL classification:
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- O43 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
- N43 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Europe: Pre-1913
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-02 (All new papers)
- NEP-HIS-2012-05-02 (Business, Economic & Financial History)
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